Japan Officially Recognizes Bitcoin Payments as Legal Currency
This week began with good news for the various casino players and gamblers in Japan, as Bitcoin payment was recognized as a legal transaction.
As of 12:01 local time on Monday, it was announced by the Japan’s Financial Services Agency that the decentralized virtual money would be recognized as a legal tender. This implementation brings debate close to a month in the National Diet and the government’s legislative branch. The debate is centered on whether Bitcoin should be acknowledged, regulated, and accepted in the Asian country.
“Critics who opposed the effort cited Bitcoin’s alleged widespread use by money launders and criminal organizations. Due to the currency’s anonymous nature, it’s virtually impossible to track and keeps tabs on,” as revealed by authorities.
The legalization of this cryptocurrency will bring a massive breakthrough in the casino sector as it happened in Colombia. Operators will be encouraged to set up more Bitcoin casino platforms, and more players will be encouraged to register and enjoy the game.
This announcement means that financial employees will need to undergo training classes on the cryptocurrency. The government is therefore expected to force banking institutions that engage in Bitcoin exchanges to adhere to operational regulations. This may happen even though there is no defined specific on what that might entail.
Bitcoin has long been used by online gambling platforms that wish to operate in countries where the internet casinos are not legal.
The success of online casinos is usually dependent on the legalization of Bitcoin in that particular area. An unofficial research conducted has revealed that most online casino platforms prefer to use Bitcoin as an option of deposits and withdrawals.
Some experts believe that Japan will need to quickly figure out a way to track Bitcoin, or at least track and know whether it is being used in an unlawful way.
It is believed that the currency has the potential to wreak havoc on the accounting department. This is possible because money in and money out will be very difficult to track.
This is captured by reporters as quoted: “Bitcoin miners, which unlock the currency by solving complex mathematical problems in groups, have freed $17 billion worth of Bitcoin into circulation. While that seems like a big number, it’s merely a drop in the bucket in terms of total worldwide money. According to estimates, there’s about 1.2 quadrillion ($1,200,000,000,000,000) invested in derivatives alone on planet Earth.”
Countries like the United States of America still have high casino players even though the US Securities and Exchange Commission (SEC) have ruled against this cryptocurrency. Most countries have ruled against it because of its anonymous nature, and the Japan authorities are expected to do something about it.
In view of this, the government regulatory agency believes that the currency must be “designed to prevent fraudulent and manipulative acts and practices and to protect investors and the public interests.”
As Bitcoin casinos will be encouraged in the country, it is expected that the Bitcoin will rise even higher.
The SEC in a 2014 investor alert stated that “Potential investors can be easily enticed with the promise of high returns in a new investment space and also may be less skeptical when assessing something novel, new and cutting-edge. Unlike traditional currencies, Bitcoin operates without the central authority or banks and is not backed by any government.”
The Casino Industry legalization in Japan
The gambling sector in Japan has undergone series of obstacles, from the banning of the gambling sector to the banning of Bitcoin. Gambling in Japan is generally banned by the chapter 23 of the criminal code. However, there are several exceptions to this ban as betting on horse racing and other motor sports are recognized by law.
It is reported that public sports, lottery, and football pools are held under special laws. This is to increase the income of national and local governments, as well as to offer a form of entertainment to the people.
There have been movements in Japan within the Liberal Democratic Party government to open casinos in a way of boosting tourism in the country. Despite this movement, casino remains illegal in Japan.
Recent sports betting on baseball and sumo wrestlers have caused a scandal.
The previous Tokyo governor, Shintaro Ishihara on April 4, 2011, made a statement against the popular game pachinko parlors.
According to him, the popular game together with vending machines eats up about 1000 kWh. He explained that following the consequences of the earthquake of March 11, 2011, the people were asked to reduce energy consumption by the government.
Ishihara has at the same time been pushing the legalization of casinos. He proposed the building of casinos in Odaiba in 2000, but the idea was not approved despite the high public interest.
One reason for the disapproval of the casinos was that the Japanese being not used to casino gambling will be prone to addiction.
The possibility for the development of casino industry in Japan is the creation of floating casinos. Casino legislation in Japan has therefore picked up a fresh momentum with lawmakers. This has prepared to submit the Integrated Resort (IR) Enabling Act to the Diet.